Phoenix Education Partners (PXED) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 was $222.5 million, nearly flat year-over-year, with six-month revenue up 1.3% to $484.5 million, driven by enrollment growth and improved student retention, partially offset by higher discounts from employer relationships.

• Average total degreed enrollment rose 1.8% year-over-year in Q2 to 82,600, supported by strong retention and growth in employer-sponsored enrollments, which accounted for 34–35% of total enrollment.

• Adjusted EBITDA increased 7.8% year-over-year to $34.8 million (15.7% margin), with adjusted diluted EPS up to $0.58 from $0.56.

• Net income for Q2 was $10.8 million ($0.28 per diluted share), down 33% year-over-year, primarily due to higher share-based compensation and IPO-related expenses.

• Continued investment in technology, AI, and employer partnerships, with high student satisfaction and performance above national benchmarks.

Financial highlights

• Adjusted EBITDA for Q2 was $34.8 million (15.7% margin), up from $32.3 million (14.5%) year-over-year; six-month adjusted EBITDA was $110.0 million (22.7% margin), up from $102.4 million (21.4%).

• Adjusted net income attributable to shareholders was $22.6 million, up 5.7% year-over-year.

• Cash and equivalents plus marketable securities totaled $252.1 million as of February 28, 2026, up from $194.8 million as of August 31, 2025, driven by $80 million in operating cash flow.

• No outstanding debt as of February 28, 2026; $100 million undrawn revolving credit facility in place.

• Allowance for credit losses on accounts receivable was $40.4 million at quarter-end, down from $43.7 million a year earlier.

Outlook and guidance

• Fiscal 2026 net revenue guidance reiterated at $1.025–$1.035 billion; adjusted EBITDA guidance at $244–$249 million.

• Revenue expected toward the lower end of the range due to marketing dynamics, but adjusted EBITDA trending toward the upper end due to cost management.

• Quarterly dividend of $0.21 per share to continue, with annualized $0.84 per share, subject to board approval.

• $50 million share repurchase program authorized.